USD/CHF clocks 13-month high, runs into 23.6% Fib R of 2000 high - 2011 low

The sell-off in the Swiss Franc in Asia pushed the USD/CHF to a 13-month high of 0.9718 - which is also the 23.6% Fibonacci retracement of the fall from the 2000 high to 2011 low.
The one-month 25-delta risk reversal has jumped to minus 0.625; its highest level since May 15. The one-month ATM volatility is also hovering at the highest level since May.
This indicates the rally has legs and it is only a matter of time before the resistance offered by 0.9718 (23.6% Fib) is taken out. The 14-day RSI has turned bullish as well.
USD/CHF Technical Levels
The spot was last seen trading around 0.97 handle. A daily close above 0.9718 (23.6% Fib) would expose 0.9771 (June 15 high) and 0.9814 (100-DMA). On the lower side, breach of support at 0.9662 (1-hour 10-MA) would open doors for 0.96 (zero levels) and 0.9575 (1-hour 50-MA) levels.
Author

Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

















